Shares of NetEase (NASDAQ:NTES) experienced a more than 8% drop in Hong Kong trading on Tuesday, following JPMorgan’s comments regarding the underwhelming debut of the company’s latest game. In the U.S. premarket trading, NetEase shares saw a 2% decrease.

JPMorgan analysts highlighted that NetEase’s new release, Condor Heroes, ranks 21st among top-grossing games in China’s iOS store, significantly lower than the expected top-five placement. The game received criticism from players for its combat system and graphics.

The analysts also mentioned the recent drop in NetEase’s stock price as reflecting the market’s reservations regarding its gaming performance for the first and second quarters.

In addition, analysts at Morgan Stanley adjusted their forecast for NetEase’s gaming revenue growth for the years 2023 to 2025 to a 10% compound annual growth rate (CAGR), down from an earlier projection of 14%. This adjustment was primarily due to the disappointing performance of Condor Heroes and monetization changes in FWJ PC.

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